CA|CS|CMA INTER APPLICABLE FOR MAY/JUNE 24 EXAM CA Vishal Bhattad Amendment Covered: inance ‘Act 2023 GST/IGST Amendment Act 2023 fication & Circular till 31st October 2023[Link]] Chapter Name Page No. 1. | Concept of Supply 1 2. Reverse Charge Mechanism 4 3. | Composition Levy 6 4. | Exemption under GST 7 5. | Time of Supply 9 6. Input Tax Credit " 7, | IGST Includes Place of Supply 12 8. | Registration 13 9. Tax Invoice, Debit note & Credit Note 18 10. Payment of Tax 19 11. | TDS-TCS 20 12. | Return 2Ce ee ek LNs nace eta cc CGST (Amendment) Act, 2023 (effective from 01/10/2023):- Sec 2(105):- —_| "Supplier" in relation to any goods or services or both, shall Supplier ‘mean the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied Proviso inserted:- Provided that - aperson who organises or arranges, directly or indirectly, supply of specified actionableclaims, = including a person who owns, operates or manages digital or electronic platform for such supply, shall be deemed to bea supplier of such actionable claims, ~ whether such actionable claims are supplied by him or through him and - whether consideration in money or money's worth, including virtual digital assets, for supply of such actionable claims is paid or conveyed to him or through him or placed at his disposal in any manner, and all the provisions of this Act shall apply to such supplier of specified actionable claims, as if he is the supplier liable to pay the tax in relation to the supply of such actionableclaims. Newly inserted | “Ontine gaming" means offering of a game on the internet or an electronic network Sec 2(80A):- and includes online money gaming. Online gaming Newly inserted | "Online money gaming” means online gaming in which Sec 2(808):- > players pay or deposit money or money's worth, including virtual digital assets, Online money __ | Piatheexpectation of winning money or money/s worth, including virtual digital assets, gaming ‘> inany event including game, scheme, competition or any other activity or process, > whether or not its outcome or performance is based on skill, chance or both and > whether the same is permissible or otherwise under any other law for the time being] in force. Newly inserted | “specified actionable claim" means the actionable claim involved in or by way of — Sec 2(102A) (i) betting, (ji) casinos (tii) gambling (iv) horse racing (v) lottery or (vi) online Specified money gaming. actionable claim Newly inserted | "Virtual digital asset” shall have the same meaning as assigned to it in clause (47A) of Sec 2(1I7A):- _| section 2 of the Income-tax Act, 1961 Virtual digital asset V'Smart Academy [Link] CAVishal Bhattad (09850850800Percent rhe herr tie Paragraph 6 Actionable claims, other than lottery, betting-and_gambling specified actionable [Substituted by | claims cqst (Amendment) — || Analysis: ‘Act, 2023 (w.e.f. > Earlier, actionable claims involved inonly lottery, betting & gambling were treated 01/10/2023): as supply & taxable. Now, online money gaming, casinos, & horse racing are also taxable. All actionable claims other than these 6 are outside the ambit of supply. ‘> The rate applicable on them is 28% & the value has been prescribed in the Valuation Rules [Refer Chapter - Value of Supply]. Issue: Whether holding shares by a holding company of the subsidiary company will be treated as a supply of service or not and whether the same will attract GST or not? Legal Provision: There is a SAC (Services Accounting Codes) entry '997171' in the scheme of classification of services mentioning; “the services provided by holding companies, i.e holding securities of (or other equity interests in) companies and enterprises for the purpose of owning a controlling interest. Explanation: > Securities (which includes shares) are considered neither as goods nor services under definition of goods & services u/s 2(52) & u/s 2(102) of CGST Act, 2017. 2 This implies that the securities held by the holding company in the subsidiary company are neither goods nor services & thus, purchase or sale of shares or securities, in itself is neither a supply of goods nora supply of services. 2 Foratransaction/activity to be treated as supply of services, there must bea supply as per under section 7 of CGST Act. Clarification: The activity of holding of shares of subsidiary company by holding company cannot, betreated as a supply of services bya holding company to said subsidiary company & cannot be taxed under GST. CAVishal Bhattad {© 09850850800 [Link] V'Smart AcademyExplanation: > Eating joint is a wide term which includes refreshment or eating stalls/ kiosks/ counters or restaurant at a cinema. 2 Thecinema operator |) may run these refreshments or eating stalls/ kiosks/ counters or restaurant themselves or ii) theymay giveit on contract toa third party. 2 The customer may like to avail the services supplied by these refreshment/snack counters or choose not to avail these services. Further, the cinema operator can also install vending machines, or supply any other recreational service such as through coin-operated machines etc. which a customer may or may not avail Clarification:— |) Itis clarified that supply of food/ beverages in cinema hall is taxable as ‘restaurant service’, if a) the food or beverages are supplied by way of or as part ofa service, and ) supplied independent of the cinema exhibition service. 2) Also, where the sale of cinema ticket and supply of food and beverages are clubbed together, and such bundled supply satisfies the test of composite supply, the entire supply will attract GST at the rate applicable to service of exhibition of cinema, the principal supply. V'Smart Academy [Link] CAVishal Bhattad (09850850800REVERSE CHARGE & ECO RCM in case of supply of goods [Substituted by N/No. 19/2023- CT (Rate) Dt. 19/10/2023 (w.e.f.20/10/2023):- [[Link].] Description of supply of goods ‘Supplier of goods Recipient of goods Used vehicles, seized &| Central Government Any registered person confiscated goods, old & used goods, waste & scrap State Government, Union territory or alocal Authority RCM in case of supply of goods is not relevant for exam. GTA Services Conditions for GST rate to be applied [N/No. 06/2023, Once GTA exercises the option to itself pay GST on the services supplied by it under forward charge during a Financial Year will be continued unless the GTA files declaration for RCM inthe 4th Qtr. of P.F.Y. This amendmentis just for information & not relevant for exam. services by Govt. [Inserted by N/ No. 14/2023 (w.e.f.20/10/2023)] [Link]. | Category of Supply of Services ‘Supplier of service Recipient of service Any services by Govt. Central Government, State | Any business entity located Government, Union territory or |inthetaxable territory. local Authority Exceptions:~ Services excluded from RCM (i.e. normal charge is applicable for following service 1) Renting ofimmovable property, and 2) Services specified below- (i) Services by the Department of Posts (ii) Services in relation to an aircraft or a vessel, inside or outside the precincts ofa port oran airport; (iii) Transport of goods or passengers. SI. No. SA:- Services by way of Renting of Immovable Property by Govt. [Inserted by N/No. 14/2023 (w.e.f.20/10/2023)] 1LNo. | Category of Supply of Services Supplier of service Recipient of service Services by way of Renting of | Central Government Any person Registered Immovable Property under the C@ST Act, 2017 State Government, Union territory or local Authority CAVishal Bhattad {© 09850850800 [Link] V'Smart AcademyServices notified u/s 9(5) - tax on supplies of which shall be paid by ECO, if they are supplied through Electronic Commerce Operator (ECO) [N/No. 16/2023 (w.e.f. 20/10/2023)]:- Clause (i) (words _ | Services by way of transportation of passengers by a radio-taxi, motorcab, maxicab, substituted) | motorcycle, omnibus-orany other-moter-vehicle or any other motor vehicle except omnibus. ia) (newly inserted) Services by way of transportation of passengers by an omnibus except where the person supplying such service through ECO is a company. ‘Comment:- Tax on transportation of passengers by an omnibus provided by a company through ECO is not payable by ECO. Academy m CAVishal Bhattad (09850850800As per section 9(3), for services supplied by director of a company or body corporate to the said company or body corporate, GST shall be paid by company or body corporate under Rem. Clarification ‘2 It is clarified that services supplied by a director of a company or body corporate to the company or body corporate in his private or personal capacity such as services supplied byway of renting ofimmovable property are not taxable under RCM. 2 Only the services supplied by director as or in the capacity of director of that company or body corporate shall be taxable under RCM. COMPOSITION LEVY Conditions for Composition Scheme [F. A. 202 PUtoats Omitted in Sec 10(2)(a) WP] The registered person shall be eligible to opt under sub-section (1), if:~ (d)_he is not engaged in making any supply of geeds-o* services through an electronic commerce operator who is required to collect tax at source under section $2; Omitted in ifheisnot- ‘Sec 10(2A)(c)] (c) engaged in making any supply of geeds-or services through an electronic commerce operator who is required to collect tax at source under section 52; V'Smart AcademyEXEMPTION UNDER GST Amendments in Existing entries [Link], Ret Teta ole 19c Service Provided by Satellite providers [N/No. 07/2023 w.e.f. 27/07/2023] Old Provision | SatebiteHeh-services supplied by indian space researel-onganisation antee relaunch services. Substituted with | Satel [Link], Services by Government & Local Authority 20/10/2023) Servcies by CG, SG,UT & LA [words Inserted by N/No. 13/2023- (w.. Exempt:~ All services by the Central Government, State Government, Union territory or local authority excluding the following services— (a) services by the Department of Posts and the Ministry of Railways (Indian Railways); (b) services in relation to an aircraft ora vessel, inside or outside the precincts of a port or an airport; (c) transport of goods or passengers; or (d) any service, other than services covered under entries (a) to (c) above, provided to business entities. Services provided to a business entity by CG,SG, UT or LA words Inserted by N/No. 13/2023- (w.e.f. 20/10/2023)] Exempt:~ Services provided by the Central Government, State Government, Union territory or local authority to a business entity with an aggregate turnover of such amount in the preceding financial year as makes it eligible for exemption from registration under the C@ST Act, 2017. Explanation:- This entry shall not be applicable to- (a) services, (} bythe Department of Posts and the Ministry of Railways (Indian Railways); i) in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; (iii) of transport of goods or passengers; and (b) services by way of renting ofimmovable property. ‘V’Smart Acad [Link] CA Vishal Bhattad8 | Services provided by Govt. to Govt [words Inserted by N/No. 13/2023- (w.e.f. 20/10/2023) Exempt:~ Services provided by Central Government, State Government, Union territory or local authority to another Central Government, State Government, Union territory ot local authority. Proviso:- Provided that nothing contained in this entry shall apply to services- (i) bythe Department of Posts and the Ministry of Railways (Indian Railways); (ii) in relationto an aircraft ora vessel, inside or outside the precincts of a port oran airport; (iil) of transport of goods or passengers. 9 | Services provided by Govt. where consideration is upto ¢ 5000 words Inserted by N/No. 13/2023- (w.e.f. 20/10/2023)] Exempt:- Services provided by Central Government, State Government, Union territory or a local authority where the consideration for such services does not exceed 25,000. Proviso 1:~ Provided that nothing contained in this entry shall apply to- (i) services by the Department of Posts and the ry of Railways (Indian Railways); (ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; transport of goods or passengers. LNA tae RRO Public services to Government [Newly Inserted N/No. 13/2023- (w.e.f. 20/10/2023)] 3B | Exempt:- Services providedto.a Governmental Authority by way of- (a) water supply; (b) public health; (c) sanitation conservancy; (d) solid waste management; and (e) slum improvement and upgradation. CAVishal Bhattad {© 09850850800 [Link] V'Smart AcademyTIME OF SUPPLY Tax to be paid on specified actionable claims at the time of receipt of payment for such supplies by suppliers (N/No. 50/2023 w.e.f. 01/10/2023):- Old Provision _ {It notifies the registered person who didnot opt forthe composition levy under section 10) of N/N 66/2017] of the said Act,as the class of persons who shall pay the central tax on the outward supply of goods at the time of supply as specified in clause (a) of| sub-section (2) of section 12 of the said Act including in the situations attracting the provisions of section 14 of the said| Act, and shall accordingly furnish the details and returns as mentioned in Chapter IX of the| said Act and the rules made thereunder and the period prescribed for the payment of tax by such class of registered persons| shall be such as specified in the said Act. Exception It notifies the registered person who did not opt forthe composition levy under section 10] inserted in ofthe said Act, other than the registered person making supply of specified N/No. 66/2017 | actionable claims as defined in clause (102A) of section 2 of the said Act, as the class| of persons who shall pay the central tax on the outward supply of goods at the time of supply as specified in clause (a) off sub-section (2) of section 12 of the said Act including in the situations attracting the provisions of section 14 of the said Act, and shall accordingly furnish the details and returns as mentioned in Chapter IX of the said Act and the rules made thereunder and the period prescribed for the payment of tax by such class of registered persons| shall be such as specified in the said Act. Analysis N/N. 66/2017: No tax payable at the time of receipt of advance for SOG Provisions All Registered Person (RP) under forward charge are not required to of Notification | Pay GST atthetime ofreceiptin relation to SOG. Note:- 1) Thus, entire GST shall become payable only when the invoice for the supply of such goods is issued or ought to have been issued & no GST is, payable on advance payment received. 2) This notification is also applicable to situations of Secl4 Non- 1) Composite supplier he has to pay, in lieu of tax payable by him, and Applicability amount calculated at the prescribed rate applied on his turnover in the State/UT for quarter. 2) For supply of services i.e. in case of SOS, GST is payable on advance receipt or invoice, whichever is earlier. 3) RP making supply of specified actionable claims. (e.g. betting, casinos, gambling, horse racing, lottery or online money gaming) Penis ‘V’Smart Acad [Link] CA Vishal BhattadTOS of N/N 66/2017 is not applicable to specified actionable claims, the specified | 0S for specified actionable claims such as online money gaming etc. would be determine as per normal provision of sec12(2) i.e. earlier of:- > the date ofissue of invoice or > thelast dateto issueinvoice or > the date on which supplier receives the payment. actionable claims. Que:- Mr. Ais registered under regular scheme under GST in Gujarat who trades in biscuits. On the other hand, he is also a partner in 2 partnership firms (registered under GST) in Gujarat, named Mehmaan Nawaazi Hotel and Lakhpati Casino. The hotel is running restaurant and serving food which had aggregate turnover of 120 lakhs in preceding financial year. Lakhpati Casino is a dealer in specified actionable claim who did not opt for composition scheme. Mr. B has availed service from all three of them (i.e. Mr. A, Mehmaan Nawaazi Hotel and Lakhpati Casino) in the month of May, the details of which areas under:- Particulars ‘Mr. A | Mehmaan Nawazi | Lakhpati Casino Hotel Date of supply 2nd May 10th May 12th May Date of issue of invoice for Rs. 10000 in each case | 4th May ith June 10th May Date of receipt of payment by supplier Ist May 6th May 25000 on 9th May & %5000 on 18th May Would notification 66/2017 apply to Mehmaan Nawaazi Hotel, if it was providing goods under composition scheme instead of restaurant service? Also, Determine the time of supply in each case for Mr. A, Mehmaan Nawaazi Hotel and Lakhpati Casino. Answer:- Legal Provision:~ DAs per section 12(2) of CST Act, 2017, the time of supply of goods shall be the earlier of the following:~ ~ Date of issue of invoice or - Last date to issue invoice or ~ Date of receipt of payment. ‘DAs per Notification 66/2017 under CGST Act, the registered person other than following person: composition supplier and = registered person making supply of specified actionable claims as defined in clause (102A) of section 2 of the said Act, shall pay CGST on the outward supply of goods at the time of supply as specified section 12(2)(a) i.e. date of issue of invoice or last date of issue of invoice. ‘> As per section 13(2)(b) of CGST Act, 2017, if invoice is not issued within 30 days of supply of services, then the time of supply of such services shall be earlier of:- the date of provision of service or - the date of receipt of payment. CAVishal Bhattad (09850850800 [Link], V'Smart AcademyDiscussion & Conclusion:- 1. In given case, notification 66/2017 applies to Mr. Aand he shall be liable to pay tax on invoice basis only and not on advance received. Accordingly, the time of supply shall be 2nd May/.e. the last date to issue invoice as per section 12(2) read with notification 66/2017. 2. In case of Mehmaan Nawaazi Hotel, notification 66/2017 is not applicable as this notification applies only to supply of goods and not services. Even if this firm was dealing in goods, this notification would still not apply as itis covered under the exception to notification 66/2017 (being a composition supplier) & hence, it is liable to pay tax on advance receipt also. The time of supply in this is 6th May because invoice is issued after 30 days of supply of service &also the consideration is received in advance. 3. Lakhpati Casino is also covered under the exception to notification 66/2017 as it is dealing in specified actionable claim i.e. casino. Hence, itis lable to pay tax on advance receipt also. The time of supply in this is 9th May for 75000 & 10th May for balance 75000 as per section 12(2) read with notification 66/2017 r, ss Amendments by Finance Act, 2023:- INPUT TAX CREDIT Sec Provision 16(2) Conditions for taking ITC 2nd Proviso | Provided further that where a recipient fails to pay to the supplier of goods or (Words services or both, other than the supplies on which taxis payable on reverse charge substituted) | basis, the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added-te-his output tax tiability:along-with interest thereon paid by him along with interest payable u/s SO, in such manner as may be prescribed. 3rd Proviso | Providedalsothat the recipient shall be entitled to avail ofthe credit of input taxon (Words | payment made by him to the supplier of the amount towards the value of supply inserted) | ofgoods or services orboth along with tax payable thereon. See Provision (8) Blocked Credit (fa) goods or services or both received by a taxable person, which are used or intended {new clause | to be used for activities relating to his obligations under corporate social inserted) responsibility referred to in section 135 of the Companies Act, 2013 V'smart Acad: [Link] —CAVishal Bhattad (0985085080012(3) Apportionment of ITC Explanation to | For the purposes of sec 17(3), the expression "value of exempt supply’ shall not sec 17(3) include the value of activities or transactions specified in Schedule Il, exeeptthose specified peeeateepbictthotiedte a) the value of activities or transactions specified in paragraph § of the said Schedule; and b) the value of such activities or transactions as may be prescribed for paragraph 8(a) ofthe said Schedule Comment:~ > Para 8(a) of Schedule Ill - supply of warehoused goods to any person before clearance for home consumption. 2 It implies that activities in clauses (a) & (b) above are included in value of exempt supply. 2 Value for clause (b) above is prescribed by inserting a new explanation 3 to rule 43. IGST ACT 2017 INCLUDES PLACE OF SUPPLY Penrice aaa heute State by buyer [Amendment by |GST (Amendment Act), 2023 (w.e.f. 01/10/2023) ] Jsec10 | Supply made [Notwithstanding anything contrary contained u/s 10(1)(a)/(c), if supply of goods is I(1)(ca)] to uRP made to a person other than a registered person, the place of supply shall be the - location as per address of said person recorded in invoice issued for said supply & (Newly location of supplier where the address of said persons not recorded in invoice. inserted) Explanation:- Recording of the name of the State of said person in the invoice shall be deemed to be the recording ofthe address of said person. ‘Summary case of OTC sales to unregistered persons is as follows:- 1) ] if address of URP is recorded | POS is location as per address of URP in invoice:~ recorded in invoice. Note:= Simply mentioning the State of URP instead of complete address would be sufficient, ii) | Ifaddress of URP is not POS is the location of supplier recorded in invoice: ‘> There are cases where an unregistered person purchases goods over the counter (OTC) in one State & transports the goods to another State (generally, the State where he resides), for instance, migrant workers, tourists, etc. ‘> In automobile sector, the residents of a State may travel to another State to purchase vehicle from that State to take advantage of lower registration charges and road tax, which vary from State to State and thereafter, take the vehicle to their State ‘2 So, this new clause will determine POS in such cases. Reason for Amendment CAVishal Bhattad {09850850800 [Link], V'Smart AcademyDetermination of Place of Supply Sec 12(8) F. Proviso Omitted sy 2023 PLACE OF SUPPLY FOR TRANSPORTATION OF GOODS The place of supply of services by way of transportation of goods, including by mail or courierto,~ (a) aregistered person, shall be the location of such person; (b) a person other than a registered person, shall be the location at which such goods are handed over for their transportation. Proviso (Omitted):- Provided that where the transportation of geodsiste-a place outside India, the piace of supply shall be the place of destination of such goods: [Sub- ISec Sec 23 : Persons Not REGISTRATION EL Ca ta nial Persons not required to register under Sec 23 are not classified as ‘taxable persons’ in GST. O)]@ Exclusively engaged in Exempt or Non Taxable supply Persons engaged exclusively in supplying goods and/or services not subject totax or wholly exempt from tax are not liable for registration. (>) |An agriculturist| > Agriculturists are not liable for GST registration when supplying, produce from land cultivation. > The definition of agriculturist includes individuals or Hindu Undivided Families (HUFs) engaged in land cultivation using their labor, family labour, or hired labour under supervision. Note: If an agriculturist is also engaged in making any supply other than supply of produce out of cultivation of land,he shall be liable to registration based on applicable threshold limit. @) by Govt Notwithstanding anything to the contrary contained in section 22(1) or section’ Notified person|24, the Government may, on the recommendations of the Council, by notification, subject to such conditions and restrictions as may be specified therein, specify the category of persons who may be exempted from obtaining registration under this Act. Persons making only reverse charge supplies (N/N 5/2017) Persons engaged only in making supplies of taxable goods &/or services, total tax on which is liable to be paid on reverse charge basis by recipient| u/s 9(3) are exempted from obtaining registrationeke PEE ae [Clause] Persons who supply goods or services or both, other than supplies specified u/s 9(5), (ix) through such electronic commerce operator who is required to collect tax at source under Sec 52 Exceptions : In following cases threshold is available eventhough supply is made through Ecou/s52 Supply of | Supplier of service (other than specified services u/s 9(5))through ECO deducting Service TCS u/s 52 & Agg. T/O, not exceeding %20 lakhs( for 4 special category of state 210 (Wv/n 65/2017) | Lakhs) ina F.Y. (registration is needed after threshold) ‘Supply of Persons making supplies of goods through an ECO who is required to collect tax at Goods source u/s 52 & Agg. T/O, not exceeding 20/40 lakhs( for 4 special category of N/N. 34/2023 | state 10 Lakhs) inaP.F.Y./C.F.Y. subject to following conditions:- Such Person (i) shall not make any inter-State SOG (effective from | _ (i) shall not make SOG through ECO in morethan ne State or UT; 01/10/2023) (ii) shall berequired to havea PAN (jv)shall declare (before making any SOG through ECO)on the common portal their PAN 2 theiraddress oftheir place of business and ‘the State or UTin which such persons seek to make such supply, which shall be subjected to validation on the common portal (¥) granted an enrolment number on the common portal on successful validation of the PAN (Wi) shall not be granted more than one enrolment number ina State or UT (vil) no supply of goods through ECO unless such persons have been granted an enrolment number (vil) where such persons are subsequently granted registration u/s 25 of the said Act, the enrolment number shall cease to be valid from the effective date of registration. Reason ‘> Earlier, unregistered persons were not permitted to make supply of goods through for an ECO (who is required to collect TCS). However, other suppliers supplying ‘Amendment| £00ds offline were allowed exemption from registration upto threshold limit. > Thus, exemption is provided upto threshold limit to suppliers supplying goods online through ECOs provided they are making only intra-State supply; since inter-State supplier of goods has to otherwise obtain compulsory registration. (xia) Online every person supplying online money gaming from a place outside India to a person Money in India; and gaming Pei aco Lees CAVishal Bhattad 09850850800 [Link], V'Smart AcademySection 30 read with Rule 23:- Revocation of cancellation of Registration ‘Sec 30] Application for | 2 Registered person, whose registration is cancelled by PO on his own (1) | revocation of motion, may submit an application to such officer for revocation of| cancellation of cancellation of registration within 90 days from the date of the service of| registration the order of cancellation of registration > On sufficient cause shown & reasons recorded in writing, extension may be By:- For a period:- Commissioner or officer authorised by |not exceeding 180 days. him, not below the rank of Additional EEE Commissioner or Joint Commissioner 2 This application shall be submitted in prescribed form at the common portal either directly or through a Facilitation Centre notified by Commissioner. Reason for In large number of cases, small taxpayers could not apply in time for revocation Amendment due to lack of funds or other reasons, adversely affecting business and there was a need to bring them again in mainstream by giving them a chance to revive their registrations & thus, the time limit is raised. Laity Procedure for Application for Registration Pre-Reg. Every person who is liable to be registered under Sec 25(1) and Requirements| every person seeking registration under Sec 25(3) (“the (1) | Dectaration of Part A applicant”), Submit PAN and state/UT details in Form GST Information REG-0I, either online or ata Facilitation Centre. in Reg - 01 Exceptions | There are some persons who don't follow Rule 8 because they havel their own specific forms and procedures. These include: >NRTPs. ‘> Those required to deduct TDS u/s $1 or collect TCS u/s 52 tax at source. > Providers of OIDAR services from outside India to non-taxable| online recipients in India, Pie a Sete > person supplying online money gaming from a place outside Yo AYES India to a person in India Isd |SDs must apply separately fortheir registration 48)| Non applicability | On recommendations of Council, CG may by notification specify the States or UTS of provisoto | wheretheprovisoto sub-rule (4A) shall not apply, sub-rule 4A N/No. 27/2022-CT Dt. 26.12.2022: Using the power given under Rule 8(48), CG (Biometric notifiedthat authentication & | 5 the provisions of rule 8(4A) shall not apply in all the States & UTS Photograph) ‘D except the State of Gujarat & Puducherry. [DEERE RUDE Ene) [Link] CAVishal Bhattad (09850850800[sub [Rute] Seren Legal Provision (1) | Examination of the Application > Application shall be forwarded to PO to examine application & accompanying documents, ‘> Ifthe same are found to be in order, then will approve the grant of registration to applicant within 7 working days from the date of submission of the application. Proviso:~ The registration shall be granted within 30 days of submission of application after ‘the physical verification of place of business inrthe-preseneeof-thesppligont the manner given under rule 25 & verification of required document, if:~ [Np (a) a person, other than person notified u/s 25(6D), fails to undergo authentication of Aadhaar number as per rule 8(4A) or does not opt for authentication of Aadhaar number or (aa) a person, who has undergone authentication of Aadhaar number as specified in sub-rule (4A) of rule 8, is identified on the common portal, based on data analysis and risk parameters, for carrying out physical verification of places of business; or (b) PO, with approval of officer authorised by Commissioner not below the rank Of AC, deems it fit to carry out physical verification of POB. [Comment:— Now, presence ofthe applicants not required for physical verification Time Limit Bank account details shall be furnished after obtaining certificate of registration & a GSTIN but earlier ofthe following:~ 2 within 30 days from the date of grant of registration, or > before furnishing the details of outward supplies of goods &/or services u/s37in FORM GSTR-1 or using IFF. fn * photographs,shattbe-ip ‘Substituted Where the proper officer is satisfied that the physical verification of| the place of business of a person is required after the grant of| registration, hemay do so and After Grant of | “5 the verification report along with the other documents, Registration including photographs, shall be uploaded in FORM GST REG- 30 onthe common portal ‘> within a period of 15 working days following the date of such verification. Physical Verification i CAVishal Bhattad 09850850800 ‘[Link] V'Smart AcademyPhysical Verification Before Grant of Registration Where the physical verification of the place of business of a person is required before the grant of registration in the circumstances specified in the proviso to rule 9(1), the PO shall get such verification ofthe place of business doneand ‘> the verification report along with the other documents, including photographs, shall be uploaded in FORM GST REG-30 ‘onthe common portal ‘D at least 5 working days prior to the completion of the time period specified inthe said proviso. Rule Provision 21A | If cancellation of| Suspension | If PO has reasons to believe that registration is liable to be cancelled, (2a) | registration is of he may suspend the registration of such person w.e.f. adate to be initiated by Registration | determined by him where cancellation of registration is pending. Department on | Comparison | > The PO compares the person's GST returns with GSTR-1, or its own motion | of Returns | — theinward supplies derived from the suppliers’ GSTR-1. ror 2 Significant differences or anomalies that suggest a violation hee of the GST Act or rules may lead to suspension and potential cancellation of registration. Contravention| of Rule 10A > When a RP violates Rule 10A(Bank Details), th registration is suspended, and they are notified via FORM GSTREG-31. 2 This notification outlines the discrepancies, anomalies, or non-compliances, and requests an explanation within 30 days as to why their registration should not be cancelled. 2A (4) Revocation of suspension of registration > The suspension of registration shall be deemed to be revoked upon completion of the cancellation proceedings by PO. 2 Such revocation shall be effective from the date the suspension had come into effect. Proviso 1:- PO may revoke suspension anytime during the pendency of| proceedings for cancellation. lProviso2:-where the registration has been suspended for contravention of| following clauses of sec 29(2) (b) Composition dealer has not furnished the return for a F.Y. beyond 3 months from the due date of furnishing the said return () Other RP, has not furnished returns for a such continuous tax period of 6 months as prescribed and hasn't been cancelled under rule 22, then submitting all pending returns Iwill automatically revoke the suspension. Proviso 3:- where the registration has been suspended for contravention of provisions of rule 10A and hasn't been cancelled under rule 22, then compliance with rule 10A (i.e. furnishing bank account details) will] automatically revoke the suspension. V'smart Academy [Link] CAVishal Bhattad (09850850800TAX INVOICE Debit Note & Credit Note Particulars of a tax invoice [Sections 31(1) & (2) read (eff recibient is unregistered Particulars of Invoice value of taxable supply is:~ Rs 50000 or more | Name and address of recipient & the address of delivery, along with the name of State & its code = Rs $0000 Unregistered recipient may stil request the aforesaid details to be recorded (clause f) in tax invoice Proviso: Provided that in cases involving supply of online money gaming or in cases where any taxable service is supplied by or through an ECO or by a supplier of OIDAR services to a recipient who is un-registered, irrespective of the value of such supply, a tax invoice issued by the registered person shall contain the name of the state of the recipient and the same shall be deemed to be the address on record of the recipient. anne PTTL Reason for Amendment: 2 Proviso to clause (f) earlier provided for mandatory recording of name & address of unregistered recipients of service along with the PIN code and name of the State and the said address shall be deemed to be the address on record of the recipient when the said services were provided by or through ECO or bya supplier of OIDAR services to an unregistered recipient even if the value of taxable supply< ‘50,000. > Said proviso has been amended to provide that the tax invoice may contain name of the State of the recipient only and the same shall be deemed to be the address on record ofthe recipient. The name and address ofthe recipient along with its PIN codeis not mandatory to be declared on the tax invoice. ‘> Further, proviso is also made applicable to supply of online money gaming. Manner of issuing the invoice [Sections 31(1) & (2) read with rule 48 feat Legal Provision 4)E-Invoice |Suppliersto —_[RP, whose aggregate turnover in any preceding financial year from Read with which E-invoice| 2017-18 onwards exceeds $ Crore I[n/w 13/2020], . is applicable except > AGovernment Department, >ALocal Authority, ‘2 Special economic zone unit and > Banks, ‘> Financial institutions, insurers, ‘> GTAand passenger transport service providers and > Multiplexes IRN requirementlinvoice/other documents in respect of supply of goods or services or lboth to a registered person or for exports V'Smart AcademyIssue:~ Whether e-invoicing is applicable for supplies made by a registered person, whose turnover exceeds the prescribed threshold for generation of e-invoicing, to Government Departments or establishments/ Government agencies/ local authorities/ PSUs which are registered solely for the purpose of deduction of tax at source as per section 51 of the CGST Act? Discussion:~ ‘> Government Departments or establishments/ Government agencies/ local authorities/ PSUs, which are required to deduct TDS u/s 51 of CGST Act, are liable for compulsory registration u/s 24(vi). ‘> Therefore, Government Departments or establishments/ Government agencies/ local authorities/ PSUs, registered solely to deduct TDS as per section 51, are to be treated as registered persons. Clarification:- It is clarified that, registered person, whose turnover exceeds the prescribed threshold for generation of e-invoicing, is required to issue e-invoices for supplies made to such Government Departments orestablishments/ Government agencies/ local authorities/ PSUs, etc under rule 48(4) of CGST Rules. re PAYMENT OF TAX 1) [Totat ITC for Interest] While calculating interest under Rule 88B of the CGST Rules, consider the total Calculation Input Tax Credit (ITC) available in your €- credit ledger. This includes the credit from GST, CGST and SGST combined, not just IGST. INo Interest if If youve wrongly availed IGST credit but reversed it, you wont face interest sufficient balance of | liability under Sec $0(3) of the CGST Act as long as your total ITC (IST, CGST, [total ITC SGST combined) never dropped below the wrongly availed I@ST credit during that period. Interest on Utilization| Fyourtotal ITC (including IGST, CGST, SGST) falls below the amount of wrongly of Weongly Avaited | ®vailed IGST credit, it's considered as utilizing the wrongly availed credit. 1GST Credit Interest will apply based on how much the total ITC falls below the wrongly availed amount. 2) /Availability of 2 ITC of compensation cess can be utilised only towards payment of compensation cess compensation cess & not for payment of any tax &*/or reversal of credit credit available in under CGST/SGST/IGST heads. e-credit ledger to _| 2 Accordingly, credit of compensation cess available in electronic credit ledger calculate interest cannot be taken into account while considering the balance of under rule 888(3) electronic credit ledger for calculation of interest rule 888(3) of CGST for wrongly availed Rules for wrongly availed and utilized I@ST, CGST or SGST credit. & utilized IGST, ICGST or SGST credit V'Smart Acad: [Link] CA Vishal Bhattadle Sec 52(15): Ti to furnish a statement for an ECO The operator shall not be allowed to furnish a statement under sub-section (4) after the expiry of from the due date of furnishing the said statement. [Proviso| Provided that the Government may, on the recommendations of the Council, by| notification, subject to such conditions and restrictions as may be specified therein, allow an operator or a class of operators to furnish a statement under sub-section (4), even after the expiry of the said 3 years from the due date of furnishing the said statement. ola he-detaile-fuenished-by the-opt dem out nat_be-red: eb Provision _| eleetronieattyteenetofthesupptiers Rule 67(2) on the common portal after filing of FORM GSTR-8 for claiming the amount of tax collected inhis electronic cash ledger after validation Reason for | Unregistered suppliers of services and now goods also are allowed to make supplies. Amendment | through ECOstill the time their turnover does not exceed the threshold limit. > Now, details of TCS furnished by ECOs in Form GSTR-8 shall be made available only to registered suppliers, as the supplies by unregistered persons do not attract TCS. Maximum Time limit for furnishing GSTR -1/GSTR-3B & others /GSTR-9 Sec 37() | ARP shall not be allowed to furnish the details of outward supplies (GSTR-1)/ Return u/s & 39 & annual return u/s 44 for atax period/ F.Y. after the expiry of from the due Sec 39(11) | date of furnishing the said details. & Provis« Sec 44(2) | CG may, on the recommendations of the Council, by notification, allow a RP or a class of RP to furnish the details of outward supplies/return/AR for a tax period/F.Y., even after the expiry of the said period of fromthe due date of furnishing the said details. Pe eeu Exemption | Commissioner exempts the registered person whose aggregate turnover in F.Y. 2022-23 from filing _|is up to 22 Cr from filing annual return for the said F.Y. CA Vishal Bhattad 09850850800 [Link] V'Smart AcademyRule 59(6) :~ Registered person debarred from furnishing details of outward supplies in PS Sa Ga If previous GSTR-1is/ | forany oftheprevious tax periods has not been furnished by him, are not However, Govt. may allow notified persons to furnish GSTR-1, even if he has not furnished furnished — | GSTR-1forlormore previous tax periods ARP shall not be allowed to furnish GSTR-1 for a tax period, ifthe details of outward supplies If previous a) A registered person (Monthly Scheme):- GSTR-3B is, Ishall not be allowed to furnish] if he has not furnished the return in FORM GSTR-3B for| are not JGSTR-1, preceding month furnished _ | b) A registered person (QR Ishall not be allowed to furnish} if he has not furnished the return in FORM GSTR-3B for |GSTR-lor IFF, preceding tax period Non ARP, to whom an intimation has been issued on the common portal under Rule 88C(1) compliance | (wheretaxliability shown in GSTR-1 exceeds the tax liability paid in GSTR-3B) in respect of a tax period, of intimation 2 shall not be allowed to furnish GSTR-1 or IFF fora subsequent tax period, under rule _|> unless he has either deposited the amount specified in the said intimation or has furnished a 8sc(1) reply explaining the reasons for any amount remaining unpaid, as required under rule 88C(2). |Comments: > if reply was furnished but found to be not satisfactory, then only recovery proceedings u/'s 79 would bettriggered as this rule does not prescribe blocking of GSTR-1/ IFFin such case. > Ifno action was taken against the issuance of DRC-01B, there would be blocking of GSTR-1/IFF along with initiation of recovery proceedings u/s79 of CGST Act, 2017. Non , ED compliance [if any intimation is issued rule 88D(1)(for excess ITC) on RP in respect of a tax period or of intimation] periods, he shall not be allowed to furnish GSTR-1 /IFF fora subsequent tax period, under rule unless he has either paid the amount equal to the excess ITC as specified in the said 88D(1) intimation or has furnished a reply explaining the reasons in respect of the amount of [excess ITC that still remains to be paid. Non RP shall not be allowed to furnish GSTR-1/ IFF, if he has not furnished the details of the furnishing bank account under rule l0A. Bank Details| [Link] CAVishal Bhattad (09850850800Rule 88D :- Manner of dealing with difference in ITC available in autogenerated statement containing the details of ITC and that availed in return (Newly inserted via N/No. 38/2023): 1 | inci ‘ation for | D If ITC availed by a RP in the return for a tax period(s) furnished by him in GSTR-38. difference in exceeds ITC available to such person as per auto-generated statement containing the ITC in GSTR-3B] details of ITC in GSTR-2B for said tax period(s), by specified amount & percentage, BGSTR-2B:- | the said RP shall be intimated of such difference in prescribed form ‘> Acopy of such intimation shall also be sent to his e-mail address. 2 Such intimation shall highlight the said difference and direct him to— (a) pay an amount equal to excess ITC availed in the said FORM GSTR-38, along with interest payable u/s 50, through prescribed form, or (b) explain the reasons for the aforesaid difference in TC on the common portal, within 7 days. 2 [Consequences | Ifany amount specified in the intimation remains to be paid within 7 days’ period for failureto | and pay or reply:~ | 2 where no explanation/reason is furnished by the registered person in default or > where the explanation/reason furnished by such person is not found to be acceptable by the proper officer, the said amount shall be liable to be demanded as per section 73 or section 74, Some Important Comments: 2 Effective date of new rule 88D:~ > Rule 88D is not yet effective. The said rule gets triggered only where the difference between GSTR-28 and GSTR-38 would exceed a certain amount & percentage as may be recommended by council which have not yet been notified. > Thus, the rule cannot be implemented until the amount and percentage are notified CA Vishal Bhattad [Link] V'Smart Academy